Kaz Minerals has announced this wee...
One of the worlds largest copper producers in Kazakhstan has expanded into Russia, with a major copper acquisition.
Kaz Minerals has announced this week that it has completed a $900 million cash and shares deal to buy the Baimskaya project, located in the Chukotka region of Russia.
The Baimskaya project is one of the world’s most significant undeveloped copper assets, with a JORC resource of 9.5Mt of copper and 16.5 Moz of gold.
Kaz will look to producer around 250 kt of copper and 400 koz of gold annual over the first ten years of operations. The mine itself has a life of mine of 25 years.
The deal is made up of an initial consideration of $675 million, which will see Kaz take a 75% interest in the project.
Breaking the deal down further, Kaz will pay $436 million in cash as well as three million Kaz Minerals shares, valued at $239 million.
The remaining 25% of the project will be acquired through a Deferred Consideration of $335 million.
“The acquisition of Baimskaya marks the next stage of the transformation of KAZ Minerals,” said Oleg Novachuk, Chair of Kaz Minerals.
”The development of this new project in Russia will enable the Group to continue its industry leading growth, delivering both value and volume as the copper market is forecast to enter a period of significant supply deficit. Through our successful execution of the Bozshakol and Aktogay projects in Kazakhstan we have built a track record for project execution which makes KAZ Minerals the ideal platform to develop this globally significant asset.”
Kaz Minerals operates Bozshakol and Aktogay open pit copper mines in the Pavlodar and East Region of Kazakhstan, three underground mines and associated concentrators in the East Region of Kazakhstan and the Bozymchak copper-gold mine in Kyrgyzstan.